“ 4 STEPS TOWARDS COMMERCIALIZATION’’ Pierre Gauthier, Director, Hydrogen Energy Air Liquide Advanced Technologies US LLC (ALATUS) April 1, 2008

Agenda STEP 1: Develop H2E Knowledge STEP 2: Develop Solid Projects with ‘Real’ END-USERS STEP 3: Develop Solid H2 Packages STEP 4: Develop Vertical Markets

Various options exist ...

Even more Options… Green H2 at the right price… … but also, knowledge gaps…

…we need alignment now! Insurance 101 AHJ’s 101 …Knowledge ‘GAPS’ Insurance 101 Propane Installation 1$ Hydrogen Installation 5X$ AHJ’s 101 Permitting Takes Up to 2 Years Codes & Standards Alignment Effort Hydrogen for Journalists 101 Green H2? H2 Pricing? WTW? FC Cars? …we need alignment now!

Knowledge vs Road Map Targets: R&D                   New packaging Filling stations Storage modeling Filling stations H2 fueled cars Advanced storage Fuel-cell tests Liquid H2 storage Membrane Fuel-cell Security tests Cryogenics

…and Industry is Reducing TARGET ‘GAPS’ Storage Materials for H2 LH2 Boil-off Rates Hydrogen With CO2 Sequestration FC Reliability Stack Life Lower COSTS H2 Systems …and needs continued funding support!

STEP 1: Develop H2E Knowledge STEP 2: Develop Solid Projects with ‘Real’ END-USERS STEP 3: Develop Solid H2 Packages STEP 4: Develop Vertical Markets

Challenge 1 : H2 for End Users Gas Industry Has An Unbiased Approach… Cylinders Users SR Gas Filling Centre SR Liquide Transport Generation Pipelines Positioned to support the significant near term growth foreseen to continue in Oil Refining there are already many mechanisms available to supply whatever the size of demand for hydrogen supply for a given end user. New On-Site Studies: Waste to electricity/H2, Methane to NG/H2, Wind/Solar & H2 ISSUE: H2 AT THE RIGHT PRICE! …Transportation Costs!!!

Challenge 2: Solid Cases at Today’s H2 $ REAL END-USERS Forklifts Campus Vehicles Airport TUGs Delivery Vehicles Shuttle Buses Transit Buses Mining Vehicles Back-up Power Remote sites Niche Vehicles

…how will investors do it! Challenge 3: Early Wins If we cannot explain how the H2 system will sustain itself after the Demo… …how will investors do it!

STEP 1: Develop H2E Knowledge STEP 2: Develop Solid Projects with ‘Real’ END-USERS STEP 3: Develop Solid H2 Packages STEP 4: Develop Vertical Markets

RIGHT-SIZE FUELING STATION H2 Forklift ‘Package’ OEM FC PACK INCENTIVES SAFETY BUILDING OWNER GREEN H2 UNIONS AHJ TRAINING RIGHT-SIZE FUELING STATION PACK INTEGRATOR RIGHT PRICE H2

RIGHT PRICE H2 DELIVERED FC Back-up ‘Package’ INCENTIVES OEM FC PACK SAFETY FC PACK CERTIFICATION LAND OWNER UNIONS GREEN H2 NEW H2 LOGISTICS AHJ TRAINING RIGHT-SIZE STORAGE PACK INTEGRATOR RIGHT PRICE H2 DELIVERED

…teaming up to crack one market open! … H2 Packages Need Teams Serious DATA was Presented for Market Size But… H2 Packages are Complex Systems Business Cases Made with Unknown Volumes A Team Member Alone Cannot Open a Market Team members with the Same Vision …teaming up to crack one market open!

STEP 1: Develop H2E Knowledge STEP 2: Develop Solid Projects with ‘Real’ END-USERS STEP 3: Develop Solid H2 Packages STEP 4: Commercialize Vertical Markets

10 H2 Potential Verticals

Vertical Markets Before Commercialization Ensure Key Stakeholders are properly Informed and Documented; Continued Funding in R&D to Meet H2 Roadmap Targets; Bring Business Sense to the Pre- Commercial Projects; Find Right Team with Shared Vision It can be done!

Vertical Markets They are out there!

Air Liquide Advanced Technologies US LLC. Thank You… Air Liquide Advanced Technologies US LLC. pierre.gauthier@airliquide.com 514-846-6141